Discover a new standard of luxury living in Las Vegas. Surrounded by the rugged beauty of the Mojave Desert, there’s more to the city than the Las Vegas Strip. Beyond the flashing lights and neon signs, buyers will find upscale residential developments with quality homes, first-rate amenities, and close-knit communities. Here’s what you need to know about buying homes in Las Vegas as a top-tier client.
Las Vegas Luxury Real Estate at a Glance
Las Vegas luxury homes toe the line between the haunting beauty of the Mojave Desert and the showmanship of LV. The luxury market is remarkably diverse, from sleek condos offering views of the skyline to Modern-style mansions that blend into the desert landscape.
Luxury homes in LV typically offer a seamless transition from indoor to outdoor living with oversized windows and landscaped grounds that bring nature and light into the home. Many home designs incorporate a mix of organic and inorganic material, such as natural stone, wood, glass, steel, and concrete.
Buyers are also drawn to larger-than-life amenities when buying homes in Las Vegas. Luxury properties in the area often come with high-end features like infinity pools, restaurant-grade kitchens, private gyms, home theaters, and more.
Many also seek the privacy of living in a remote and exclusive community, of which there are many in LV. The city and the surrounding areas are home to established gated communities with controlled access points and fewer residents.
Some of the most coveted residential communities in the LV area include:
- Las Vegas
- North Las Vegas
2022 Market Trends for Las Vegas
The LV housing market is hot in 2022. Single-family homes sales are up from 2021 year, reaching their highest level in 14 years during the pandemic. Home prices are soaring to new heights as inventory shrinks on a monthly basis. The demand for housing is primarily being driven by new residents moving to LV from Southern California and other expensive housing markets.
Homes in Southern Nevada are being sold at a brisk pace, with prices reaching record highs practically each month. February 2022 was a particularly strong month for the market as Southern Nevada’s hot streak continued from the previous year.
The median sales price of single-family homes was $450,000, up 3.4% from January 2022 and up 26.8% from February 2021. Single-family homes also sold faster, with 76.7% of homes having been on the market for just 30 days or fewer, compared to about 66.7% during the same time last year. Sellers are getting flooded with offers due to limited inventory. Home builders have increased their prices and have had to put many buyers on the waiting list.
Realtors recorded 114 luxury homes sold for $1 million or more in February 2022. The median sales price for luxury homes decreased by $162,500 from $1,312,500 compared to $1,475,000 in January. LV is considered among the most overvalued housing markets in the United States with homes selling over 41.88% over their long-term pricing trend. Buyers are paying near-peak prices for both luxury and regular homes.
Despite the decrease in median sales price, people are still buying homes in Las Vegas. The price surge has not discouraged top-tier buyers and investors, who are willing to pay a premium for the luxury lifestyle in LV. Although the pandemic has disrupted businesses in the hotel, casino, and restaurant industry, there is no discernible downturn in the resale housing market, which has since recovered and reached record highs in 2022.
Although first-time buyers can potentially face challenges entering the market this year, they should still be able to find their dream home with the help of a local Realtor. Seasoned buyers should bring their a-game due to low inventory and high demand for resale homes.
Rental prices have increased while rental vacancies have dwindled to record lows. The average rent for a one-bedroom in February 2022 was $1,250, up 25% from the same time last year while the average rent for a studio increased by 3% in January 2022. This implies strong demand for rentals in LV, making it a profitable market for property investors. According to Realtor, LV was among the fastest growing metro areas in December 2021.
Should you buy or rent Las Vegas luxury properties?
Still deciding between buying or renting in LV? Here are a few things to consider when making the call.
Reasons to Rent Luxury Homes in Las Vegas
Top-tier clients tend to shuttle between different cities for work or play. If your career and lifestyle involves frequent travel or work relocation, then it’s a great idea to rent luxury properties. This lets you experience the Las Vegas lifestyle without being tied to a property.
If you see yourself settling down in LV, or spending most of the year in the metro area, renting lets you dip your toes into the water before making the jump to homeownership. Renting can give you a feel for the lifestyle and experience what it’s like being a resident, as opposed to being a tourist, without committing to a major home purchase just yet.
Reasons to Consider Buying Homes in Las Vegas
If you travel often, but would like to set up a home base in the Las Vegas area, then it makes sense to invest in a luxury property where you can stay in-between flights and international engagements.
It’s also worth considering buying a second home in LV if you want to enjoy the thrills of the Entertainment Capital in the wintertime, or when you’re up for a vacation. There are many snowbirds who come to LV to escape the harsh winters of the Northeast and Canada, investing in second homes where they can enjoy sunny weather.
LV is also a viable place to live despite its reputation as a party destination. With fantastic weather, good schools, world-class healthcare, and no state income tax, LV residents enjoy a high quality of life. Although there is a relatively higher sales tax rate of 8.375%, basic services and purchases such as groceries, prescription medicine, and medical devices are tax-exempt.
The State of Nevada also has some of the lowest property taxes in the U.S. Tax rates range from 2.33% to 3.40% for every $100 in assessed value.
Basic Tips for Choosing the Right Luxury Property in Las Vegas
- Start the home search – Most luxury listings are off-market listings, which means that they aren’t advertised in major real estate platforms and databases. This is where a luxury real estate agent comes in. They can provide access to exclusive listings and private sellers who are looking for qualified buyers for their luxury homes.
- Get to know the neighborhood – Visit the neighborhood, get to know the homeowners association (HOA), and inquire about the country club. Driving around and attending a few socials can help you get a feel for the community and its residents.
Although it’s common for luxury buyers to make blind offers, that is, to make an offer on a home without viewing it in person, it’s worth making a trip to the neighborhood if you’re an out-of-state buyer, an international buyer, or if you intend to use the home as a permanent residence.
- Learn about future developments – Are there any projects in the pipeline that can potentially affect your decision to buy a home, or your enjoyment of the property? Look out for planned developments, such as a new condo building that might block your view, or a major business hub that can increase foot traffic in the neighborhood.
Conversely, if you’re making a purchase based on future developments that are meant to increase the desirability of the community, such as public transit or a new freeway, keep in mind that these projects could potentially get canceled, or that there may be delays in project completion.
- Look for strong resale value – Whether you’re buying a private residence or an investment property, real estate experts recommend looking for property with strong resale value. This gives you the option to make some money back or sell the home for a good profit if it’s time to move on.
When determining a home’s resale value, it’s important to have a long-term view of the neighborhood – how is it doing now, and where it will be in 10 years? Fortunately, many private communities in Las Vegas have HOAs that take measures to protect property values and preserve the character of the neighborhood.
- Evaluate a property’s proximity to attractions – They say real estate is all about location. What kind of lifestyle do you want to experience in Las Vegas, and do you need to be close to major attractions and commercial centers in order to attain it? On the flipside, do you prefer a remote location where you can enjoy privacy and exclusivity? The answer to these questions will help you choose the right luxury property for your needs.
Requirements for Buying a Luxury Homes in Las Vegas
- Financial documentation – An estimated 32% of all home purchases in Southern Nevada in March 2022 were cash purchases. But if you decide to finance your luxury home purchase with a jumbo loan, you’ll need to work closely with your accountants and legal advisors in order to gather sufficient financial documentation while protecting your privacy.
Jumbo loans exceed conforming limits and lenders require thorough financial documentation and proof of funds. High earners typically work with accounting teams and money managers to shelter their finances, which can pose a challenge when you need to demonstrate that you have the funds for a jumbo loan. Coordinate with your team ahead of time and protect your purchase with sufficient documentation.
- Property taxes – Property taxes and home insurance premiums are usually rolled into monthly mortgage payments for those who finance their home purchase. Buyers who decide to pay cash for their luxury homes will have to settle monthly or annual property taxes on their own.
- Additional fees – When buying a home in a luxury condo building or a private community, there are additional costs such as monthly maintenance fees. Some country club communities may also charge membership fees and initiation fees.
Working with the Right Real Estate Professionals
Working with luxury real estate professionals is crucial to buying homes in Las Vegas. Whether you’re buying your first luxury home, or your second, a local expert will make sure that the buying process goes smoothly for all parties involved. Only a seasoned and well-connected agent can provide access to exclusive listings and country clubs while protecting your privacy and maintaining discretion throughout the transaction.
Work with the Wolf of Real Estate
Hunting for your next luxury real estate deal in Las Vegas? Contact me, Juan Rubio of Luxe Estates & Lifestyles, at 702.913.3044. You can also email me here. Deluxe Magazine named me among the “Top 20 Real Estate Agents in 2020 and 2021” while Vegas Magazine included me in their “Top 20 Real Estate Agents on Social Media”. I also rank among the Top 100 in Las Vegas in Real Estate for sale volume in the previous quarter.
If you’re looking for someone who works 24/7, you can rely on me for finding exclusive listings and off-market properties that other companies don’t have access to. As an aggressive negotiator, I secure the best real estate deals for my clients, breaking records for price per square foot in the LV area.
As a luxury real estate agent, I have worked with high earners locally and globally, managing big real estate portfolios for investors who flip properties in Vegas and acquiring some of the lowest price per square foot for potential investments. I can’t wait to hear about your plans in LV.